CSCO - Get Report) January $12.50 deep-in-the-money calls, which will cost us $5.10 at the most. The symbol for this particular option is CYQ AV. This could be the best risk-reward profile I have seen in a long, long time. It is amazing to me how hated this stock is. Check these numbers out: Cisco has a forward P/E of 14.37, return on equity at a solid 23.06%, revenue of $27.08 billion, total cash of $18.18 billion, and free cash flow at $11.57 billion. (The final number represents the amount of money the company has left after it has have paid all its bills! There is $11.57 billion in free cash flow? What am I missing here?) I want somebody to tell me how this monster of a company can be trading at $17 and change?
Cisco reports its quarterly results after the close on Tuesday. It will report a solid number, as it always does. This is arguably one of the strongest companies in the world, but its stock price resembles the complete opposite! In closing, just remember: You could greatly increase the odds of making money if you use this winning strategy. Believe it!
Over the weekend, in Canton, Ohio, the Pro Football Hall of Fame inducted six new members. John Madden, perhaps better known as a broadcaster (and certainly for the video game that bears his name), was inducted for his achievements as a Super Bowl-winning coach with the Oakland Raiders. Rayfield Wright, an offensive tackle on the Tom Landry-led Dallas Cowboys, was a symbol of sustained excellence, who tasted Super Bowl champagne as well. Troy Aikman, a later-era Cowboy, guided the Cowboys to three Super Bowl wins in four years along with his fellow "triplets," Emmit Smith and Michael Irvin. Similarly, Harry Carson, a superb, highly intelligent middle linebacker on the Bill Parcells-led New York Giants, played for a Super Bowl champion, alongside Lawrence Taylor, and started the now-obligatory Gatorade dousing of the head coach, after the 1986 Super Bowl. Warren Moon never won a Super Bowl, but he had a stellar career, initially in the Canadian Football League, and ultimately with the Houston Oilers, where in his NFL career, he passed for nearly 50,000 yards. Unfortunately, the final inductee was unable to participate in the festivities. Reggie White, The Minister of Defense, tragically passed away on Dec. 26, 2004, from a cardiac arrhythmia at the age of 43. A huge man at over 300 pounds, White was an ominous presence for opposing teams, combining enormous strength with incredible speed. Arguably, he was the greatest defensive end that ever played the game. The likes of him may never be seen again. He was beloved in Philadelphia, as well as Green Bay, where he helped restore the famous Packer legacy by reclaiming Super Bowl glory. Although the man is gone, his legacy continues to sing loudly. Lastly, I would like to congratulate Chase Utley on his recent 35-game hitting streak, which ended on Saturday against the Mets in New York. El Duque and a few left-handed relievers, in addition to a terrific play by Jose Valentin to rob him of a hit in the 7th inning, stopped Utley. Utley is a scrappy, left-handed hitting second baseman who plays the game the way it is supposed to be played. In short, he is a gamer. Sounds vaguely familiar to a guy who used to play center field for the Mets and the Phillies; a scrappy, left-handed hitter, who like Utley, was not particularly fond of a clean uniform. Nonetheless, Chase Utley is my deep-in-the-money call this week for his chase of one of the most hallowed records in all of sports, the 56-game hitting streak of the Yankee Clipper. In these times of tainted records, "Where have you gone, Joe DiMaggio?" Remember: Life is a journey, enjoy the ride!